Moody's might downgrade AMN

Moody's Investors Service said it placed the ratings of AMN Healthcare, Inc. on review for possible downgrade, including its Ba2 corporate family rating, its Ba3 probability of default rating and the Ba1 (LGD2, 24%) ratings on its $40 million senior secured revolver due December 2012 and $110 million senior secured first-lien term loan B due December 2013.

The action follows the company's announcement that it has entered into an agreement to acquire the parent company of Nursefinders, Inc. (doing business as Medfinders) in a transaction financed using a combination of debt, equity and cash.

From an operational standpoint, Moody's views the acquisition positively and anticipates the combination of these two companies will create a relatively stronger player with greater scale in the health-care staffing and managed services market.

Nonetheless, the proposed transaction will likely increase pro forma financial leverage and reduce available cash on hand, the agency said.

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